UPDATE: Eskom confirms plans to lay off ‘at least ten’ top executives

Eskom has confirmed that it will be laying off up “at least” ten top executives, Sunday Times has reported.

Investigative editor of EE Publishers, Chris Yelland, took to Twitter on Saturday afternoon to report that top members of Eskom’s executive committee are being retrenched in a massive “clean out” at the struggling public electricity utility.

According to Yelland, Willy Majola, Mongezi Ntsokolo, Freddy Ndou and Louis Maleke are among those Eskom Exco who face retrenchment.

Attempts to contact Eskom spokesperson Khulu Phasiwe have so far been unsuccessful.

Sunday Times has since reported that the utility has confirmed that there will be retrenchments.

“We are indeed looking at a ballpark figure of about 10 executives but these retrenchments have not yet been finalised,” the company said.

The Citizen reported at the beginning of December that with the R900 billion hole in Eskom’s balance sheet, extreme depreciation of assets and a R419 billion debt burden, experts say the cash-strapped utility is beyond redemption.

Energy expert Ted Blom said no amount in bailouts would save the power utility and the only solution was to place the utility under business rescue.

Eskom, currently battling to keep the lights on in summer when demand is supposed to be at its lowest, wants government to take over R100 billion off its debt to improve its balance sheet.

Jabu Mabuza, Eskom chairperson, reportedly brought up the proposal, which was never discussed with Treasury despite implications on the fiscus, during an interview at an investor roadshow in London.

The power utility is currently kept afloat by a government debt guarantee of R350 billion and Blom says Eskom is an “energy skunk on quicksand”.

He said Eskom’s R1.4 trillion in assets are now worth just R250 billion. They have R170 billion in their asset book for Medupi Power Station, but Blom said anybody could buy Medupi for less than R30 billion.

(Additional reporting by Sipho Mabena)

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